The Chief Executives of all

Exchange Companies and

Exchange Companies of ‘B’ Category

Dear Sir(s) / Madam,

Clarification regarding Minimum Capital Requirement

1. Attention of the Exchange Companies and Exchange Companies of ‘B’ Category is invited towards Para 2 (i), Chapter 3 and Para 3 (i), Chapter 8 of Exchange Companies Manual – 2017 which prescribe minimum capital requirements for Exchange Companies and Exchange Companies of ‘B’ Category respectively.
2. In this regard, it is clarified that the minimum capital requirement is calculated as under:

Minimum Capital Requirement = Paid-up Capital less Accumulated Losses

3. All Exchange Companies and Exchange Companies of ‘B’ Category shall ensure to meet their respective minimum capital requirements at all times.
4. All other instructions on the matter shall remain unchanged.
5. Failure to comply with the above instructions shall attract regulatory action under the relevant provisions of Foreign Exchange Regulation Act, 1947.